To splice the two index series, we need to adjust the second series to have 2004 as the last year before splicing. The index for 2004 in the second series (2000 = 100) can be calculated by multiplying the index for 2005 by the ratio of the index for 2004 to the index for 2005 in the first series (1995 = 100).
Index for 2004 in the first series = 90
Index for 2005 in the first series = 94
Index for 2005 in the second series = 115
Index for 2004 in the second series = Index for 2005 in the second series * (Index for 2004 in the first series / Index for 2005 in the first series)
Index for 2004 in the second series = 115 * (90/94)
Index for 2004 in the second series = 115 * 0.9574
Index for 2004 in the second series = 110.15
Therefore, the correct answer is approximately 110.15, which would round to 110 when considering significant figures. So, the index for 2004 is 110.
Consider the following two price index series:
Year 1995 = 100
2002 80
2003 86
2004 90
2005 94
Year 2000 = 100
2005 115
2006 121
2007 130
2008 133
Splice the two index series to form one continuous series with 1995 as the base year. The index for 2004 is:
80
90
115
122.34
1 answer